R&D Expenditure Management In China Innovation Center Of Pharmaceutical Company A

R&D of the patent drug is the soul of an enterprise, the results of research and development is the fundamental foothold in the market, the research achievement determines its future success in the pharmaceutical market. Given a lot of investment on R&D in companies as A, a typical original drug enterprises, the purpose is to deliver new drugs as soon as possible to benefit the patients. While the way of R&D is full of difficulties, lots of uncertainties during the period of research, each new drug almost takes 10?15 years averagely to be launched. The main cost of new brand-name drug is neither from manufacturing cost nor from sales expenses, the majority cost come from R&D spending. Within the limited R&D budget, excellent management of R&D expenditure is important and urgent to deliver new drug for company A. The good way of managing R&D costs is to put the resources into scientists'experiments instead of wasting during the unnecessary processes and cases, strengthen the supervision of SOPs, and simplify the SOPs to improve the efficiency.This paper is upon to China Innovation Center of company A, detail describing its R&D expenses and the way of R&D spending managing, to analyze the issues & risks in the key areas of R&D expenditure management, and find out the relative solutions. The way of R&D expense managing is general in place for China Innovation Center of Company A. But there are still a lot of issues with typical important areas. E.g. vendor selection, equipment management, consumable management, etc. Beside these issue areas, comprehensive budget management and project cost management are to be improved as well. This investigation purpose is to work out the effective SOPs and right way of R&D expense management upon SWOT analysis and the Competitive Advantage theory.Hope this paper can be good reference for other peer R&D centers.